Govt's transport operators warn of cost rises

Government motorway and railway operators are among organisations battling a proposed law change allowing local councils to set conditions over infrastructure projects.

Although the Government says changes to the Resource Management Act are aimed at simplifying the much-criticised legislation, its own transport operators are warning of cost rises and inconsistencies in projects of national importance.

Examples cited by Transport Agency chief executive Geoff Dangerfield in a submission to a parliamentary select committee included a claimed potential blowout of more than $100 million to his $230 million budget for widening Auckland's Southwestern Motorway and building the bridge across Manukau Harbour.

He said that was the extra estimated cost of amendments to the project recommended by Auckland City, before the former Transit NZ withdrew a notice of requirement to enlarge its motorway corridor along the Onehunga foreshore, and to remain within an existing land designation.

Mr Dangerfield said that stopped his organisation from negotiating with the local community, resulting in a commitment of $18 million to foreshore enhancements.

But he said larger modifications sought by the city council included altering the design of a since-stalled new interchange to be consistent with a proposal of the Volcanic Cones Society and to improve pedestrian access to the foreshore.

He said that if the proposed legislative changes were already in place, a binding decision on the notice of requirement would have been made by council hearings commissioners, able to be overturned only by an appeal to the Environment Court.

That would be a reverse of the existing onus on councils to lodge appeals with the court if their recommendations on notices of requirement are dismissed by "requiring authorities" including private network operators such as Telecom.



Mr Dangerfield said notices of requirements would be assessed primarily against local needs and priorities, as assessed in district plans, and councils would not necessarily take account of regional or national needs and benefits.

"This could result in territorial authority decisions that seek fundamental changes to the nature and scope of state highway projects to address potential adverse effects," he said.

As well as significantly boosting costs and raising doubt over the viability of projects, variations between different councils "could threaten the development of a nationally consistent state highway network".

Similar concerns have been aired in submissions by KiwiRail and national electricity grid operator Transpower.

Environment Minister Nick Smith said yesterday submissions from major infrastructure providers included support for most of the clauses of the amendment legislation.

But he said he was keen to hear the select committee's views on whether it was appropriate for "requiring authorities" to be the decision-makers over their own applications.